By Steve Moore | Tuesday 6 June 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
With the attempted robber barons having recently posted their offer document to shareholders, InterQuest (ITQ) independent director David Higgins, being advised by the company’s Nomad and broker Panmure Gordon, has summarised why the offer should be ignored ahead of writing to shareholders no later than 15th June…
This includes that the 42p per share offer price represents a discount of approximately “56.0% to the 12 month high Volume Weighted Average Price of 95.5 pence per share” and only a 7% premium to the closing share price on the last business day prior to the announcement that the management team and Luke Johnson vehicle, Chisbridge Ltd, was evaluating making an offer.
This is despite progress including the restructuring of underperforming divisions and prior increase in consultant headcount, which typically has a delayed impact on revenues. It is added that “the management team and Luke Johnson, clearly sees value in the business which is not reflected in the offer price” and conclusion that the offer “materially undervalues the company and its prospects”.
I previously argued some similar points HERE and HERE. Largely due to Chairman Gary Ashworth’s 33.3% shareholding, Chisbridge’s most recent acceptance update stated letters of intent and irrevocable commitments to accept the offer from approximately 43.7% of the share capital. We’ll see what happens from here – but I’ll certainly currently be ignoring the offer.
Offer a fair price robber barons!
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